Minimum Wage from 1976 to 2024 & EOBI Contribution from 1976 to 2024

The minimum wage is the predetermined wage set by both federal and provincial governments, which mandates the payment for unskilled workers in private firms and factories. Its enforcement is strict to safeguard workers’ rights and prevent exploitation by employers.

There exists a direct correlation between the minimum wage and the rate of EOBI (Employee Old-Age Benefits Institution) contributions. The government sets a specific percentage at which EOBI contributions are levied by the institution. Initially, the contribution rate was fixed at 5%, solely borne by the employer. However, in 2001, this paradigm shifted with an ordinance, making the employee a participant as well, with an additional 1% contribution from their end.

The year wise Minimum wage and EOBI Contribution rate from 1976 to 2024

From July-1976 to June-1985, EOBI Contribution & Minimum wage

The EOBI was established on July 1st, 1976, coinciding with a minimum wage of Rs. 1000/-. Initially, the introduced rate for EOBI contributions stood at 5% of the minimum wage, equating to Rs. 50. Hence, at the onset of EOBI in 1976, the contribution rate was fixed at Rs. 50, solely from the employer’s side. This meant that every employer falling under the purview of the EOBI Act was required to remit Rs. 50 for each employee earning the minimum wage of Rs. 1000 or less.

It’s noteworthy that during this period, the maximum cap was also set at Rs. 1000. Consequently, at the initiation of EOBI contributions, only workers’ contributions were collected. Professional degree holders and management employees were exempt from contributing, and the institution did not collect any contributions from them

From July-1985 to Sep-1993

In July 1985, the minimum wage went up from 1000 rupees to 1500 rupees. However, even with this increase, the EOBI contribution remained at 5%, which meant the employer only had to contribute 75 rupees. The maximum cap was also set at 1500 rupees. Additionally, professional degree holders were exempt from EOBI contribution, while supervisory and managerial staff was covered with maximum cap in wages of rupees 1500. 

From Oct-1993 to June-2001

In October 1993, the minimum wage jumped to 3000 rupees. At that time, the EOBI contribution rate remained at 5%, which meant 150 rupees in total. This entire contribution was covered by the employer, no employee contribution. The good news was that there was no longer a maximum cap on minimum wages. Now, all employees, except for directors and the owner of the company, were required to contribute to EOBI. This included professional degree holders also.

From July-2001 to June-2005

In July 2001, the minimum wage remained at 3000 rupees. However, there was a change in the EOBI contribution. It increased to 6%, but with a new twist: 1% of the EOBI contribution was now deducted directly from employees’ wages. This new approach aimed to instill a sense of ownership and social responsibility among employees towards the institution. With this change, the EOBI contribution rose from 150 to 170 rupees. The additional 20 rupees represented the employee’s contribution, which was deducted directly from their wages or salary. The responsibility of deducting and submitting the EOBI contribution to the institution remained with the employer.

From July-2005 to June-2006

In July 2005, the minimum wage stayed unchanged, but the EOBI contribution rate rose from 6% to 7%. Under this new arrangement, 5% was to be contributed by the employer, while 1% was to be deducted directly from employee salaries and wages and then submitted to the institution. This meant the employer’s contribution amounted to 180 rupees, while the employee’s contribution stood at 30 rupees.

From July-2006 to June-2007

In July 2006, the minimum wage was raised to 4000 rupees, but the EOBI contribution rate remained unchanged at 7%. This meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 280 where employer’s contribution was 240 and employee’s contribution was 40.

 From July-2007 to June-2008

In July 2007 the minimum wage was increased to 4000 to 4600 rupees but the EOBI contribution rate remained unchanged at 7%. This meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 322 where employer’s contribution was 276 and employee’s contribution was 46.

From July-2008 to June-2010

In July 2008, the minimum wage was bumped up to 6000 rupees. However, there was a decrease in the EOBI contribution rate from 7% to 6%. Under this revised rate, the employer was responsible for contributing 5%, while the employee chipped in with 1%. Under this new rate, the EOBI contribution amounted to 360 where employer’s contribution was 300 and employee’s contribution was 60

From July-2010 to June-2012

In July 2010 the minimum wage increased to rupees 7000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 420 where employer’s contribution was 350 and employee’s contribution was 70.

From July-2012 to June-2013

In July 2012 the minimum wage increased to rupees 8000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 480 where employer’s contribution was 400 and employee’s contribution was 80.

From July-2013 to June-2014

In July 2013 the minimum wage increased to rupees 10000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 600 where employer’s contribution was 500 and employee’s contribution was 100.

From July-2014 to June-2015

In July 2014 the minimum wage increased to rupees 12000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 720 where employer’s contribution was 600 and employee’s contribution was 120.

From July-2015 to June-2016

In July 2015 the minimum wage increased to rupees 13000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 780 where employer’s contribution was 650 and employee’s contribution was 130.

From July-2016 to June-2017

In July 2016 the minimum wage increased to rupees 14000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 840 where employer’s contribution was 700 and employee’s contribution was 140.

From July-2017 to June-2018

In July 2017 the minimum wage increased to rupees 15000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 900 where employer’s contribution was 750 and employee’s contribution was 150.

From July-2018 to June-2019

In July 2018 the minimum wage increased to rupees 16500 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 990 where employer’s contribution was 825 and employee’s contribution was 165.

From July-2019 to June-2021

In July 2019 the minimum wage increased to rupees 17500 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 1050 where employer’s contribution was 875 and employee’s contribution was 175.

From July-2021 to June-2022

In July 2021 the minimum wage increased to rupees 20000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 1200 where employer’s contribution was 1000 and employee’s contribution was 200.

From July-2022 to June-2023

In July 2022 the minimum wage increased to rupees 25000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 1500 where employer’s contribution was 1250 and employee’s contribution was 250.

From July-2023 to June-2024

In July 2023 the minimum wage increased to rupees 32000 but the EOBI rate remains the same this meant that 6% was contributed by the employer, while 1% was deducted from employees’ wages. Under this new rate, the EOBI contribution amounted to 1920 where employer’s contribution was 1600 and employee’s contribution was 320.

EOBI Contribution and minimum wage 1976 to 2024

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